Figure 1

Conceptual framework. The top two rows relate to costs and inputs supplied by PSI as franchisor. The bottom two rows are costs and inputs supplied by private health care providers. The “inputs” supplied by PSI are price reductions as well as oversight of the distribution network and final medical care episode. This oversight occurs under the agency of franchise officers who visit each private provider on a monthly basis. The inputs supplied by private providers are medical commodities and professional effort.